Analysts Have Made A Financial Statement On Shimadzu Corporation's (TSE:7701) Third-Quarter Report

Shareholders might have noticed that Shimadzu Corporation (TSE:7701) filed its third-quarter result this time last week. The early response was not positive, with shares down 8.1% to JP¥4,156 in the past week. Shimadzu reported JP¥133b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥50.56 beat expectations, being 2.7% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Shimadzu

Taking into account the latest results, the current consensus from Shimadzu's twelve analysts is for revenues of JP¥565.6b in 2026. This would reflect a satisfactory 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 15% to JP¥214. In the lead-up to this report, the analysts had been modelling revenues of JP¥564.6b and earnings per share (EPS) of JP¥215 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,209. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Shimadzu, with the most bullish analyst valuing it at JP¥6,100 and the most bearish at JP¥3,900 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Shimadzu's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 7.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Shimadzu.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shimadzu's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥5,209, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Shimadzu analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Shimadzu Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.